Cross Border Resources Announces Strategic Alternative Review

Published on Thursday, 09 February 2012 06:51 Written by TradersHuddle Staff

SAN ANTONIO, Feb. 9, 2012 /PRNewswire/ -- Cross Border Resources, Inc. (OTCQX: XBOR) ("Cross Border" or "the Company"), a San Antonio-based oil and gas exploration and production company, today announced that its board of directors has decided to conduct a broad review of strategic alternatives aimed at maximizing shareholder value. To assist in the review process, Cross Border has engaged KeyBanc Capital Markets as its financial advisor.

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Based on the Company's current reserves, production and operations, the Company believes that the common shares of Cross Border trade at a substantial discount to the net asset value of its underlying assets. The strategic review will evaluate the Company's current long-term business plan against a range of alternatives that have the potential to maximize shareholder value. Cross Border expects to evaluate several alternatives, including strategic financing opportunities, asset divestitures, joint ventures, or a corporate sale, merger or other business combination.

Cross Border's Chairman and CEO, Everett "Will" Gray II, said, "Over the past 13 months, both management and the board of directors have worked to ensure that Cross Border Resources could achieve aggressive growth in both daily production and oil and gas reserves, and we are pleased that the Company has experienced growth in both production and reserves since the business combination of Doral Energy and Pure Energy Corp. in January 2011. However, we strongly believe that our current share price does not reflect the value of our assets, and we are therefore conducting a thorough review to determine whether shareholder value can be maximized through alternative methods. Cross Border has a solid portfolio of assets within the Permian Basin, which has witnessed a commanding resurgence over the past several years due to new unconventional plays such as the 2nd Bone Spring and Wolfberry."

The strategic review process has not been initiated as a result of any particular offer. The Company cautions that there are no guarantees that the strategic alternative review process will result in a transaction or, if a transaction is approved by the board of directors, whether the terms or timing of such a transaction will be approved by shareholders.

About Cross Border Resources

Cross Border Resources is an oil and gas exploration company, headquartered in San Antonio, Texas, focusing on non-operated opportunities with proven operators within the Permian Basin. Cross Border consists of over 800,000 gross (approximately 300,000 net) mineral and lease acres within the state of New Mexico targeting various emerging plays including the 1st & 2nd Bone Spring, and more conventional plays such as the Abo, Yeso, San Andres, as well as our Wolfberry acreage located in West Texas. Cross Border Resources currently owns approximately 31,000 net acres within the Permian Basin.

Additional information about the Company is available on its website, www.xbres.com, and news updates are available via Twitter, @CrossBorderRes.

Forward-Looking Statements

This news release contains forward-looking statements that are not historical facts and are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward-looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include general economic and business conditions, misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations or access to cash, breach by parties with whom the Company has contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information risks for the Company can be found in the Company's filings with the U.S. Securities and Exchange Commission.

Contacts:

Investor Relations Contact:

Jon Cunningham

RedChip Companies, Inc.

Tel: +1-800-733-2447, Ext. 107

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http://www.redchip.com

Company Contact:

Cross Border Resources, Inc.

Everett Willard "Will" Gray II

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SOURCE Cross Border Resources, Inc.